extraordinary redemption

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Extraordinary Redemption

A situation in which a bond issuer redeems a bond before its maturity because the revenue source paying the coupons disappears. For example, suppose a callable bond is issued to build a factory, and the revenue from the factory pays the interest on the bond. If the factory burns down, the company may redeem the bond at par so it no longer has to make interest payments. While the above example is catastrophic, most extraordinary redemptions occur for more mundane reasons; for instance, a mortgage-backed security may be extraordinarily redeemed if too many mortgages are refinanced. An extraordinary redemption is also called a special call.

extraordinary redemption

References in classic literature ?
As this man afterwards exerted much influence in awaking the attention of his fellow savages to Christianity, it might seem that in this first visit of the messengers of the gospel he was singled out by a special call to work in the cause.
History repeats itself, but the special call of an art which has passed away is never reproduced.
I have no special call to right any Marblehead man, but 'tweren't no fault o' Ireson's.
We are being quite well looked after by the local police; they're giving us a special call every hour.

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